Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19569 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f. 

4 15 U.S.C. 78f(b)(4). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7320 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55620; File No. SR–

NASDAQ–2007–039] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Modify the Distributor Fee for Nasdaq 

Index Weighting Information 

April 12, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’)1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 4, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been substantially prepared by 

Nasdaq. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify distributor 

fees for Nasdaq Index Weighting 

Information. The text of the proposed 

rule change is available at Nasdaq, the 

Commission’s Public Reference Room, 

and www.nasdaq.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it had received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. 

Nasdaq has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to modify distributor fees for 

Nasdaq Index Weighting Information. 

Nasdaq disseminates Nasdaq Index 

Weighting data via the Nasdaq Index 

Dissemination Service (‘‘NIDS’’) data 

feed and via the Nasdaq Trader Web 

site. Nasdaq Index Weighting reports 

include component and weighting 

information for a number of Nasdaq 

indices on a daily basis. Market 

participants pay a fee to obtain a license 

to distribute the Index Weighting 

Information to end users. The fees are 

based on the number of end users 

(whether internal or external to the 

organization) and the frequency of the 

distribution. The fees permitting 

distribution with unlimited frequency 

range from $1000 for the right to 

distribute the data to 1–500 subscribers 

up to $5,000 for the right to distribute 

to 10,000+ subscribers. The fees 

permitting distribution of data once a 

month, quarter, or year range from $500 

for the right to distribute data to 1–500 

subscribers to $1,000 for the right to 

distribute to 10,000+ subscribers. 

The proposed rule change would 

decrease the distributor fee for the 

lowest pricing tier, 1–500 subscribers, 

from $1,000 to $300 in the case of 

unlimited frequency of distribution, and 

from $500 to $275 in the case of 

distribution once a month, quarter, or 

year. Although the fee schedules 

provide for multiple tiered pricing 

based on the number of end users, the 

lowest pricing tier is the most common 

option selected by existing customers. 

The proposed fee would apply to 

distributors receiving the data via any 

delivery platform, including via NIDS or 

the Nasdaq Trader Web site. Distributors 

receiving the data via more than one 

delivery platform would be charged 

only once. The remaining tiers of the fee 

schedules (i.e., fees for 501–999, 1,000–

4,999, 5,000–9,999, and 10,000+ 

subscribers) will not change under this 

proposal. 

Nasdaq believes that the fee decrease 

would make this data report more 

attractive to vendors who may already 

be receiving and distributing other 

Nasdaq data feeds, thereby promoting 

the broader dissemination of Index 

Weighting Information. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,3 in 

general, and with Section 6(b)(4) of the 

Act,4 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among 

members and issuers and other persons 

using any facility or system which the 

Nasdaq operates or controls, and it does 

not unfairly discriminate between 

customers, issuers, brokers, or dealers. 

The proposed rule change reflects 

demand patterns for Index Weighting 

Information and is designed to provide 

an equitable allocation of fees across the 

customer base of Nasdaq market data 

distributors. Nasdaq further believes 

that this rule change would encourage 

the broader distribution of the Index 

Weighting data, thus improving 

transparency and thereby benefiting the 

investing public. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which Nasdaq consents, the 

Commission will: 

(A) by order approve such proposed 

rule change; or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 


pwalker on PROD1PC71 with NOTICES
19570 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

5 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

417 CFR 240.19b–4(f)(6). 

5 17 CFR 242.600 et seq. 

6See Securities Exchange Act Release No. 55210 

(January 31, 2007), 72 FR 5777 (February 7, 2007) 

(SR–NYSE–2007–08). 

7See telephone conversation between Craig 

Hammond, Managing Director, Office of General 

Counsel, NYSE, and Christopher W. Chow, Special 

Counsel, Division of Market Regulation 

Commission, on April 11, 2007. 

8 15 U.S.C. 78f(b)(5). 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2007–039 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2007–039. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of Nasdaq. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NASDAQ–2007–039 and 

should be submitted on or before May 

9, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7330 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55618; File No. SR–NYSE–

2007–32] 

Self-Regulatory Organizations; New 

York Stock Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change, and 

Amendment No. 1 Thereto, Relating to 

Rule 15B(T) (Protected Bids and Offers 

of Away Markets) 

April 11, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 22, 

2007, the New York Stock Exchange, 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the 

NYSE. The Exchange filed the proposal 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposal effective 

upon filing with the Commission. On 

April 9, 2007, the Exchange filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to rescind 

NYSE Rule 15B(T), a temporary rule 

which describes the obligations of 

Exchange member organizations when 

sending Intermarket Sweep Orders 

(‘‘ISOs’’) to the Exchange prior to March 

5, 2007, the Trading Phase Date of 

Regulation NMS under the Act 5 (‘‘Reg 

NMS’’). The text of the proposed rule 

change is available at the Exchange, on 

the Exchange’s Web site at http:// 

www.nyse.com, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On January 26, 2007, the Exchange 

adopted NYSE Rule 15B(T),6 which 

requires member organizations that send 

ISOs to the Exchange prior to March 5, 

2007, the Trading Phase Date of Reg. 

NMS, to simultaneously send an ISO (or 

comparable order) for the full displayed 

size of the top of the book of every other 

ITS participant displaying a betterpriced protected quotation.7

Given that ISO requirements are 

contained in NYSE Rule 13 now that the 

Trading Phase Date has passed, the 

Exchange, through this filing, seeks to 

delete NYSE Rule 15B(T) from Exchange 

Rules in order to eliminate potential 

confusion regarding the procedures for 

member organizations when sending 

ISOs to the Exchange. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirement under Section 6(b)(5) of 

the Act 8 that an Exchange have rules 

that are designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and national market system, and, in 

general, to protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 


pwalker on PROD1PC71 with NOTICES